>> spotlight on st. petersburg. russia's biggest business summit kicks off. we are live with the chief executive of the country's biggest stock exchange and largest carmaker. >> cashing in on the u.k. housing boom. >> stock starts trading today as china's answer to amazon raises one point that it -- $1.8 billion in its u.s. ipo. welcome to "the pulse." i am mark barton.

>> i am olivia sterns. also coming up, unilever sells the sauce. find out why it is shedding ragu and bertolli. >> we will tell you about the tech trayvon protest against russia's role in ukraine. it is russia's biggest gathering of business leaders. this year is one of the most controversial. joins us from the st. petersburg international economic forum. you have been covering the summit and russia for over two decades. what is different this year? >> what is different is who isn't coming. what is interesting is why. you look at american ceos. they aren't coming this year because the white house told them to stay away. it is not just the u.s. ceos. a lot of european companies aren't coming. even international organizations.

the ifc, the world bank, they are all staying away from this for him. there is a clear signal that the international community is trying to send through this business for them to president putin that if you want to go forward in ukraine, you will be isolated. this forum will give you a sense of what it will look like. some companies are here. the boss of bp will be here. they own a fifth of russia's largest oil company. but they won't be talking. we will be taking a look at how russian companies that are here are dealing with this crisis and those international companies that are operating here are trying to navigate this. not so simple. >> on the matters of geopolitical problems, events are changing all the time. what is the latest state of play? >> more trouble in ukraine.

you have got president putin on his way back from china. he just did a $400 billion gas supply deal. ukrainian may 25 election. the eu and united states have been very clear that if that is disrupted, that would be a trigger for more sanctions. we are in a real important watershed moment for relations between russia and the west. that makes this forum even more interesting than it is every year. tangs, ryan. ryan will be back a little later. he will join us with a interview with the chief executive of summa. >> eurozone pmi data coming out. we go to tailored tweed. >> if you look at the eurozone

as a whole, even though we saw it slide, you still have the eurozone enjoying the best quarter for three years. that is according to market eurozone pmi. market is the organization that puts these numbers out. it is interesting that you see there are measures -- the measure for new orders is at the highest since may of 2011. there is been an ongoing improvement in business conditions. if you look at the eurozone as a whole, it is looking pretty good. the other thing the market does is point out that there is a huge divergence taking place between the two main euro zone economies, france and germany. about an hour ago we got the french numbers out. contraction not only in manufacturing but in services. that brought down the entire composite index for france,

indicating that in france second quarter after a stalling first quarter, in the second quarter we could continue to see stalling economic growth or maybe even contraction. not good news for france. that about an hour ago. let me tell you more about what is going on in germany. there is a rather interesting story of rebalancing going on. in germany, you had the services index rising to a 35-month high while you had a slight contraction in the pace of growth in the manufacturing index. both of them above 50. both indicating robust growth. both indicating that we are starting a pretty good second quarter of growth in germany. it will be interesting to see. that is interesting. it sounds like we are seeing a

divergence even within the core of europe. france slowing down while momentum in germany holds up strong. what are the indications of today's pmi for ecb policy? the markets are anticipating pricing in a rate cut in june. >> they are certainly pricing in some sort of action in june. the question is, what will that action be? one of the things they mentioned in the chief economist is that there are still distillation a rate pressures out there. that is the big concern combined with the fact that you have slowing economic growth in the economies. the question really comes down to what is it that the european central bank is going to do with its tool test of unconventional measures? we will find out that answer on the fifth of june. >> thank you, david. that is david tweed in berlin. >> chinese manufacturing gauge

rose to a five-month high in may. the preliminary reading climbed to 49.7 which beat economist estimates. the report fuels optimism that china's economy is stabilizing. >> a slowing of the slowdown. let's get to another story. u.k. media company daily mail unveiling its first-half results today as well as the hotly anticipated ipo of property website zoopla. here with more is caroline hyde. how do the numbers look? >> pretty good. sales up 2%. rough it up 15%. cost efficiency is boosting the bottom line. daily mail, you tend to think mail online but this is a wide-ranging company. hunting, hunting, job business hunting, this is a company that has quite a raft of assets. it is cutting down on those assets.

it is selling job site to axel springer in germany. anticipated hotly -- we are obsessed with it -- zoopla ipo. >> no financial beat goes on zoopla? >> exactly. they are just saying, they will sell shares. it is going to be at least 25% of the outstanding shares held by private investors, most by daily mail. they hold 52.6%. , he, the founder of zoopla will be selling some shares as will other investors at this venture. they are going to be looking to cash in on what is our complete obsession with property in the u.k. >> how many times have you looked on zoopla in the last six months? >> i am one of those 40 million constantly checking. i am one of the 2 million that will make inquiries.

i am trying to sell my property and buy another. >> it sort of hits on two from the sectors of the markets. some people say we are seeing a bubble intact. some people say property. even mark carney said he is worried about rising home prices. what are you hearing from analysts? i know we don't have a price yet? es there has been worri that the one billion price tag might be a little bit on the fact that we are worried about valuations. mark carney but also lloyd's bank capping some of the lending they are going to be giving to those wanting more than half a million pounds for mortgages. overall, this is an area that is very enticing. zoopla's numbers, 20% rise in sales overall. record web traffic. they are looking to grow. they are saying, we are looking

at other areas of property, not just residential but commercial. going abroad as well. have beenmething i analyzing for quite a long time. credit suisse has been in their analyzing the property. ,he estimates for the valuation we have known about the potential ipo since february. this is something they are going to time well. sales are still enticing in the u.k.. >> globally, 2000 share sales in the last year. >> only 8% in europe. that is a perfect segue to our next story. thank you, caroline. j.d..com. >> the chinese online retailer raised nearly $1.8 billion in its u.s. ipo. shares marketed above the range price. gives it a market

value of about $26 billion. share start trading today in the nasdaq. i was looking at the offer price. it values the company at $26 billion and if you compare that to amazon and ebay, that is 2.3 times last year's sales. amazon is 1.9 times, ebay four times. it is stuck in between amazon and ebay. arend the gross statistics staggering. investors want a piece of this. grow 64% this year versus 12% in the u.s. also very interesting, they are selling the stake to tencent holdings. that is tencent trying to rival alibaba. 1.3 are buying a stake for

billion dollars. it is similar to amazon in the sense that it helps direct selling. alibaba is more similar because it is more of a platform. >> we know about our new chinese billionaire as well. the founder and executive of a net worthow has of 3 billion. i went on the bloomberg index. you get on the index, you need a net worth of $5 billion. >> you know who is on it? the saudi prince, also an investor in jd.com. very savvy tech investor. he also had a big stake in twitter. coming up, translating challenges into opportunities. we speak with the ceo of one of russia's largest holding companies. bloomberg exclusive live from st. petersburg. ♪

russia fort back to a bloomberg exclusive from st. petersburg. some of the biggest pains in business and government at the international economic forum. ryan chilcote is there with a special guest. ofwe are talking to the ceo

russia's largest private investment groups, alexander vinokurov. this is our first time chatting ever which is exciting. good afternoon. i want to start by asking you about how the sanctions that have been introduced thus far are affecting your business and your investment. group itselfumma has not been sanctioned. obviously they must be having some of that. i think it is too early to tell. a complex situation. both sides ont of the russian economy and urine economy iseuropean yet to be determined. in most of the sectors, we are and we do not yet

see any substantial effect on borrowing cost. >> i was talking to the economy minister earlier. he was saying that the threat of these economic sanctions which would be a magnitude more in terms of their severity than what russia has been threatened with thus far, the threat of the sanctions is like nukes, he said. it is a very effective deterrent but it won't be used because it would be mutually destructive. not only russian businesses but also western businesses would be hurt. you mentioned you haven't seen borrowing costs go up. i know you were educated in part in the west. your western partners, is it difficult to sit down with them nowadays? >> not at all. saidour economy minister was fully agreed.

the economy is very integrated. .he markets are so interlinked if you have issues of the magnitude which they are discussing, it will be felt everywhere. with respect to our business partners, we have a lot of international partners. we are doing -- [indiscernible] >> you just mentioned rotterdam. you want to build a terminal there. no trouble? they are happy for a russian company -- >> with all of our partners, all of our clients, it is business as usual. >> i will ask you about a transaction you did four years ago. you are now in the process of divvying up your assets. tell me about that.

early to comment or go into detail. there has been a lot of speculation. we are in discussions but it is too premature. >> but the idea would be what, anseft?oad onto tr you are mostly a construction and engineering company, is that right? >> not at all. engineering and construction is one of the three key parts of our strategy. main business of the group is transportation and logistics. core assets in all major parts of russia.

in vladivostok, we are building to large projects. there is going to be a large new bothwhich is going to be chinese transit and russian exports. we are building what will be russia's largest coal terminal. >> i understand you are looking at ipo-ing part of your business. tell me about that. it is not a goal in itself. fromith the equity markets the beginning of the year very rocky -- >> the russian market in particular. >> there is no urgent need of capital. overall --

[indiscernible] >> i know you guys were just in china. you do business with china. president putin was there doing this big gas supply deal. for your company, for russia in general, where does china fit in? is a number one trading partner for russia. is clear that the chinese have growth perspective. >> particularly if you do logistics. in logistics, we

have a lot of focus in china. we already work with a lot of chinese clients. the particular business which -- we are building a port which is 20 kilometers from the chinese border. around 50% of the volumes at that port will be chinese transit. it is cheaper to move goods from the north to the south of china via russian ports. we had a very productive weekend. tuesday, we have a memorandum with the government to develop.

>> alexander vinokurov, thank you very much for your time. that was the ceo of one of the largest private investment groups in russia. back to you. >> thanks, ryan. more from st. petersburg later on. we will have an exclusive interview with the chief executive officer of the moscow stock exchange. ♪

>> let's see how the markets are trading this morning. jonathan ferro has your asset check. >> these are your european equity markets. we are doing pretty much nothing. flat,ve the cac 40 dead the ibex dead flat, the ftse down by 0.5%. you have had a dovish fed. you had the china pmi at a five-month high. a recipe perhaps for a higher equity market. the clue is in the euro zone data. in a word, divergent. germany delivers, and then you have france. zero percent on gdp. the bond market is doing the talking. spanish bond yield below 3%. 2.98% right now. the ecb, the market expects. will they deliver? >> still to come, boycotted by barcode. find out about the tech driven

protest against russia's role in ukraine. >> you can always follow me on twitter. tweet us what you think of "the pulse" and join in the conversation. we are back in two. ♪

>> this is "the pulse." >> several explosions have torn through an open-air market in china. the area is home to millions of muslims. recent attacks have been blamed on muslim separatists. earlier, we spoke to the country's economy minister. this is what he had to say about

sanctions. >> nuclear weapons, nobody uses it, but it is still a good deterrent. >> 1.78 billion dollars in the u.s. initial ipo. shares priced above the marketed range. the stock starts trading today. jd.comth more on that sale is caroline hyde. >> priced above what it had been marketed. it came in at $19. market value of $26 billion.

this is the biggest ever chinese internet company listing in new york. is equivalent to amazon. you can sell directly to consumers, managing the logistics. 86 warehouses. not just going to shareholders in america, but also raising into by getting it further asia's the guest internet company. they upped that further. they will be pulling their business models together. >> and to help rival alibaba. ebay of this the world, bringing buyers and sellers together. j.d..com is directly selling. this is what bodes for -- bodes well for alibaba because they are coming to the market

themselves. we do not know the exact timing, but it is the biggest online retailer. jd.com has never made a profit. the operating net income has been in the negative. alibaba only pays to run its website, that is its only expense. amount ofnels huge money. >> they have been on a spending spree. that is the constant refrain coming out of amazon.com. >> less any they. -- less than ebay. >> this is what everybody will be analyzing now. you are making a bet on growth in china. >> the middle class, the

explosion of the middle class. chinese companies are coming to the united states. to want to cash in on this euphoria. you are betting on far faster growth of e-commerce in china. 64% rise in e-commerce in china. compare that to 12% in the united states. we keep talking about china slowing down. still seven percent growth in the economy, double the united states" in any kingdom -- and double play united kingdom. kingdom.ited another chinese billionaire, they are really ramping up. >> it is a windfall for all of

the u.s. banks advising them. we are waiting the ali baba ipo, which could be the biggest public offering ever. >> good for yahoo!, of course. selling two of its brands to japanese food company. billion.aise over $2 here is a man that likes this pasta sauce, jonathan ferro. investors saw this coming? >> they would never buy it in a jar. i will speak for the whole of italy right year. surprise, the price tag is not a surprise either. unilever made it clear that they are pulling back from food. they got rid of skippy peanut butter last year. they're driving into health and beauty.

2.15 billion dollars for pasta sauce might sound my a big price tag -- sounds like a big price tag. it is a well-placed product. it was widely expected to go for $2 billion. >> how does it fit in with some of the other transactions? >> we are seeing consolidation. olivia was talking about jeff bezos and amazon. not every company and the amazon. -- can be amazon. a lot of these companies are streamlining so you see the likes getting out of food and pushing into health and beauty. what he wants to do is get out of the slow growth targets. get out of the u.s. >> are you a true italian? do you make your pasta sauce?

>> of course. i make it myself. i lived in rome for a little while. >> we can debate about this. mergers and acquisitions going on in the food sector. he'll shyer brands make these jimmy dean sausages. illshire brands make these jimmy dean sausages. >> breaking news from deutsche bank. co-ceo was standing up to a dress the atm. he was interrupted by protesters. his speech is ongoing right now, that it is tough times for the bank.

selling shares to boost its capital. it is gaining the qatari royal family as a shareholder. it takes place amidst all of this news, shrinking assets. liking -- likening this to what is happening -- >> there is a similar thing going outside -- going on in the united states. more than 2000 protesters turned out, about 100 mcdonald's employees and clergy members were arrested yesterday because they were protesting for increased wages. they are -- they want $15 an hour. swiss were looking for $25 an hour. they want $15 an hour and the right to form a union. it is time to pick a new parliament.

eu residents at the polls for the first time in five years. hans nichols joins us to tell us what is at stake. >> what is at stake is the control of the parliament. this is the official slogan, this time, it is different. the heads of state, when they pick the president of the eu commission, they will have to take into account the predilection of their own voters. what advisers are trying to do is increase turnout. 1979, 62%. , 2009. every five years, we have this vote. 28 member states, close to half a billion voters. the numbers will come in closer to 400 million. .51 seats in the parliament the first election since the

debt crisis. it has left europe reeling and unemployment is at 11.8%. >> european seemed to be famously uninterested in what the parliament does. to approve power is the budget of the eu commission. the big question hanging over this, will the lead to a more assertive parliament? right toot have the propose laws, but they can massage and craft laws that are sent to them. we saw that with banking union in the last parliament. it is asserting itself a little bit more. >> thank you. hans nichols in berlin. ask we will speak to the first foreign chief of russia's biggest carmaker. his first on bloomberg from the

st. petersburg economic forum. ♪

>> russia's biggest business leaders are gathered in st. petersburg at the international economic forum. ryan chilcote is standing by. we are talking to the ceo of

russia's largest carmaker. he runs the world's largest automobile plant. they made my very first car, $3500i bought for complete with a cd changer. i sold the car a few years back. we have to talk about sanctions. the geopolitical situation and how that is affecting you. you have three shareholders. , a company which has been sanctioned because amongst the various things that owns, it owns in export that arms exporter for russia. you have -- looking at taking a controlling stake. shareholders.

>> how was the fact that one of , that company has been sanctioned? ?ow is that affecting you >> we are a russian company and we buy most of the material in russian ruble's. our main market is russia and the former soviet union. >> business is exactly the way it was? >> business as usual. >> the russian car market has been in decline recently. what do you see? >> it is still a very big market. >> just behind germany. decline.10% or 20% decline. it may be 20. >> that is industrywide? your sales?

>> 15% off last year. >> this year? >> 15. obviously, the appreciation of the ruble may have something to do with this. foreign cars are more expensive. confidence is down and money is not available from the banks. >> you are a straight talker. do you see any chances for a turnaround? is still aian market very interesting market and it will grow. it is very competitive, but i am an optimist. two years from now, we will be back to a normal growth rate. looking, ias been think taking a controlling stake. g taking a controlling

stake. >> i am the ceo. day. 500 cars per my job is to make sure we make them right. >> a lot of the foreign ceo's have stayed away from this business conference this year. the white house told american ceo's not to come and a lot of the european governments told their ceo's not to come. most of them have followed the orders. what do you think about that? >> i think it is a pity. russia is a large country. we will have ups and downs. russiatimist regarding and i am an optimist regarding the russian automobile industry. sanctions, notf the individual sanctions, the threat of economic sanctions has

acted as something like a nuclear deterrent. it has been very effective at preventing inbound investment in russia. used, he said, because it would be mutually destructive. do you agree? >> yes. i am not that concerned. customers million driving our products every day on the roads. we are benefiting from the weaker ruble. we will increase market share in the low markets. that is what we are trying to do every day to get back our midterm object to -- objective. we have 17%. >> this conflict is slightly playing in your hands.

>> for today, yes. >> e.on taking market share, -- beyond taking market share. how do you navigate this crisis? >> in a low growth market and a decline in car sales, it is restructuring, transformation. we have very good people. we have average management. >> you cut jobs are most immediately. >> i like numbers. last year, our factory workers did 22 vehicles per person for a year. they sure, we will do 40. -- this year, we will do 40. next year, we will do 60. >> that was the frank is interview i have had with a car executive in the last several

years. >> thank you. we will have more from st. petersburg later. the chief executive of the moscow stock exchange. his first car was $3500 many years ago. what was olivia sterns first car? >> it was given to be by my mother. my mother is german. an suv. , everybody drives an suv. in the late 1980's, it was handed down to be in my brother. i sold it for scrap for 10 pounds two years later. it had a great little stereo cassette. i got a new car recently and i asked the more the cd player was and they said, what are you talking about?

we check out a company making biofuel from the waist grind of your morning brew. find out more after the break. ♪

>> renewable use for your used coffee grinds. london's coffee shops produce over 200,000 tons of waste year. per

joining us for more is the cofounder arthur k. this sounds like a very cool concept. explain to us the basics. highly coffee grounds produced in london's coffee shops. we use a chemical and mechanical process to extract the oil and process the remaining waste. >> when did you come up with this idea? don't tell me you were sitting in starbucks. .> not quite as elegant as that it came out of an architectural project. i came up with the idea. i started drilling down into the technology and combining three different technologies. >> what is the scale of this?

how much biofuel are you producing? this is not going to be a solution for the world energy crisis by any stretch. london produces a huge amount of coffee grounds. there is nothing unique about that. the scale of the waste is enormous. this would still be a drop in the ocean. >> who are you selling the biofuels to? the biodiesel for road use. >> is profitable? >> highly. this is where you call a second-generation biofuel. ethanol would be a first-generation. a lot of criticism is that they compete with crops. how does coffee grinds compare with other second --

second-generation biofuels? efficientore environmentally. it has eight percent less greenhouse gases compared to wood chips. >> we had a guest earlier this week saying we should reuse wood chips. demandyou sensing big for this? >> in terms of the take up of biofuels, but this is a strong aspect for it. outlets as far as father up the chain. -- not >>ss interesting. >> for those listening on

bloomberg radio, first word is up next. for our viewers, the second hour of "the pulse." >> we are back in st. petersburg. the economy ministers saying threats from sanctions will not be used. ♪

>> spotlight on st. petersburg. we are live with the chief executive of the country's biggest stock exchange. >> cashing in on the u.k. housing boom. china's trades today as answer to amazon. hello. welcome to those just waking up in the united states. >> this is "the pulse."

live from london. it is russia's biggest baseness gathering of the year. it is one of the most controversial. .yan chilcote joins us you have been covering the summit for two decades now. what is different this year? is different this year is the number of people who are here. what is interesting is why. the bosses of companies like visa, mastercard, goldman sachs -- none of them have come because the white house told them to stay away. , the ceoeuropean ceos , some of russia's long-standing partners, have stayed away. the world bank. it is pretty clear that there is

a signal being sent to the russian leadership if president n intends to continue his action in ukraine, there is going to be a price to that -- isolation. having said that, there are some bps on hand, the boss of will be here. the head ofg to russia's economy ministry and he was telling me that the threat of economic sanctions is a lot like nukes. >> it is like nuclear weapons. nobody uses them. >> it is still a good deterrent. [laughter] >> for investors. wait and wait and wait. investors in russian stock market know about the

volatility. we will talk to the ceo of the russian stock market later in the hour and continue to look at how russian companies, how the russian market is dealing with this not so simple geopolitical process on its hands. >> ryan you have done a bunch of excellent interviews today. what are some of your biggest takeaways? speaking of the ceo, i found that pretty interesting. he said that the russian car market, the second-biggest car market in europe behind germany, could fall by about 20% this year. some of that is the depreciation of the ruble. car buyers have to pay more for foreign cars that they want to buy because the ruble is worth less in hard currency terms. that is not particularly surprising. what i found more interesting is

the real reason, consumer confidence in russia is very low. 40% of their cars are bought with loans and consumers cannot get loans to buy cars. ukraine andn the the geopolitical fallout is definitely having an effect on things here. russia has plenty of domestic issues that are weighing things down. >> are thanks to ryan chilcote. amazing that the russian car market could shank -- shrink 10%-20%. stay with us. ryan will be joining us shortly with the ceo of the moscow stock exchange. >> the top corporate story. anticipated ipo of zoopla. there was morris caroline hyde.

-- here with more is caroline hyde. >> sales up. profit up. daily mail in general trust are managing to cut cost -- and general trust are managing to cut cost. u.s.gely popular in the >> if you want to follow the kardashians, get that app. >> it is also about job hunting, bargain-hunting. it has a groupon type company where you can buy daily deals. selling jobsite. it is trying to focus in on its getting outbut also of jobsite.

also, the big one. >> the website you have been on 24 hours a day for the past five months. >> i jumped on the property bandwagon. i'm selling my flat, i am looking for another one. zoopla. they are looking to cash in on the tech storm and the property storm in the united kingdom. this is a company that is worth one billion pounds, analysts say. lucre. zoopla is not only their website , but also smart new homes, prime locations, homes overseas. myi have used it for location over here. of frothyng advantage

markets. perhaps the bubble is being fueled by market rampant speculation. shares have risen 30% or so. >> look at some of the tangibles that we are getting from zoopla. increase of 26% in sales. web traffic is up to a record level. 40 million people, including myself, are looking at this website on a monthly basis. inquiriesare making on a monthly basis. the fact that they're going to expand. not just recently. 52.5% of the company is owned by daily mail. they will be selling some of

their holding. is goinger of zoopla to make an awful lot of money. many people are going to make an awful lot of money. >> given the rights of the property market in the u.k. >> you can check the price of your current property. i cannot quite retire yet. >> sticking with ipos, 2000 so far. racing $120 billion for billion for its u.s. ipo. >> the biggest offering never for a chinese company in new york. it is all happening in china. e-commerce revenue is outpacing the united states. >> it is all happening in china, but they are all listing in new

york. whatever happens here with jd.com, it is important to follow to see what that will mean for alibaba, which could be the biggest ipo ever. ceo.am still in awe of the 41 years old. a new billionaire. he is worth $3 billion. he does not make the bloomberg billionaires list. >> it is a lot of money. whatsapp, $19 billion. he is up there. he made the rich list. >> unilever selling off two of its brands to a japanese company. on the latest portfolio changes, jonathan ferro is here. the man who makes his own pasta and does not by his own pasta sauce. >> you don't just make your own

pasta sauce, your mother does it for you. i don't do mine. three non-surprises. the reason for selling it, we knew what was going to happen. we knew the price tag was going to be around 2 billion euros -- $2 billion. pulling out of the food business, pushing into house and beauty. they sold off skippy peanut butter. billion --k $2.5 $2.15 billion is expensive , the sales ore 3.5 times.- are outside the likes of amazon, where they get to do what they want, a lot of these companies need to consolidate.

ver is an absolute beast. they are just tweaking things. getting out of low gross markets, looking to emerging markets. >> thank you. john, whose mother makes pasta sauce. >> a good deal if you can get it. the ceo of the moscow stock exchange talks about the fallout of vladimir putin's standoff. ♪

>> let's check in on the currency markets. the euro is a tad lower today. region maintaining its uneven recovery this month. a surge inped drive services activity. that offset a slowdown in manufacturing. the euro is down infraction. -- a fraction. >> time for another bloomberg exclusive. let's go back to st. petersburg. ryan chilcote is standing by with a man who knows a lot about the market fallout of vladimir putin's follow-up -- standoff with the west. ceo of theith the moscow exchange, russia's biggest stock exchange. thank you. we were together two or three

months ago. you are the master of volatility. the way we are starting the conversation with everyone is our the sanctions -- how are the ,anctions, quite limited so far imposed against russia and the geopolitical crisis in ukraine, how is that affecting your business? >> very strong volatility in the markets. at the same time, a dramatic increase in the volume of market exchange. quarter to quarter. equities increased by 35%. in fact, they have doubled. that is because traders like volatility. they also like security.

we introduced the central depository. now, we see the total results. are --ency, we definitely. competing with other locations like london, new york. we are trading mostly the original share. this is some sort of our competition. not the location. the difference in location is less than relevant. >> there has been a real drought in ipo's since the beginning of the year. how has that affected things? >> in the last five years, we do not see many ipos. >> this year, everyone was

hopeful. >> there is still some hope, of course. but we may have to wait until autumn. that is not very central for our business and our market. companies are asking us for additional listings or second listings. >> i was going to ask you about that. there is that out one of russia's biggest oil companies is going to have an spo this year. if they do have it, it would be the biggest ipo in value terms for the russian market. if that was supposed to happen now, i don't think it would be happening. is there still hope for more ipo's now on the moscow

exchange? >> definitely. c autumn -- let us see autumn. they are looking for pricing level that will come in the future. the whole market situation is pretty volatile. expecttumn, we can listings or ipo's on the market -- moscow exchange. they are getting higher and higher interest. companies.gin depends, thehis future business, on what is going on in ukraine. unfortunately, more violence. anyway, moving on, you look at the moscow exchange and how it has done. it has underperformed. do you see that continuing through the rest of the year?

>> i can talk only about the volume because we did not give the financial forecast. the 35% increase quarter to quarter inequities trading is much higher. emerging markets. in terms of derivatives, we are the world leader quarter to quarter. we have a few more seconds. what are people asking about, what are they worried about? investors, they like clarity, commitment of the country, of the government to reform and open market economy. of course, the volatility is more interesting.

we have all types of investors on our exchange. alexander afanasiev, thank you very much for your time. that was the boss of the moscow exchange. >> ryan chilcote speaking with the boss of the moscow exchange. we will be back with more of "the pulse" on bloomberg. ♪

startup plans to go public. shares are begin to start trading on may the 28th. our middle east editor has more. >> good morning. ofm joined by the cofounder marimedia. great to have you with us. the documents are out there today. you will start trading on may 28. what is the money for? >> we are looking to continue to accelerate our growth. we are looking to develop technology and enhance our real-time bidding capabilities and our mobile market capabilities. we are looking to accelerate our organic growth. we will be looking at a few acquisitions, as well.

in terms of expanding our presence in markets and looking at possible complement three technologies. >> why not tel aviv? why not new york? >> we have analyzed the different markets and we have understood that in london, we will probably get investors that are more understanding of our business and our space. it is important to know that since we are a profitable business, london will be a lot more rewarding than something like mastec, for example. >> pointing out -- nasdaq, for example. >> pointing out that you are taking 12 million pounds off the table. thetimes investors take view of, if they are selling, why should we be buying? >> the company has been selling -- profitable for a number of years. the idea was to have free flow. >> i have to ask you, your revenues or, their

three times larger, their operating product is 50% bigger, they pulled their ipo from london citing market conditions. what made you so confident that market conditions are not going to be throwing you off course? >> they were focused on the advertiser side. our focus is on the website owner and publisher. we are very determined people. we decided to go ahead and do it. we feel that our business is right and is in the right stage to do something like this. marryinge essentially advertisers with publishers. you get paid on performance. your creators are pretty stellar right now. >> yes. we have had a kick up of 90% over the past three years. we are doing over 65 billion page impressions per month.

users, i mean, see them. $43 million in 2013. very profitable, very cash generative. we are very happy and we're looking forward to 2014 and we are very happy with what we have been doing so far, what we have been achieving. >> the cofounder and co-ceo of marimedia. all the best with your ipo. we hope that market conditions do not knock it off course. china's answer to amazon. we checked out jd.com. ♪

>> welcome back. this is "the pulse." live from bloomberg's european headquarters in london. >> here are the top headlines. several explosions have torn through an open air market in china. according to overseas groups, groups in that area suffer from oppression. to russia'swe spoke economy minister. >> sanctions are like nuclear

weapons. nobody uses them. but it is still a good deterrent. investors have no transparency. they don't understand. you have to wait and wait and wait. raised $1.8 billion in its u.s. ipo. the stock starts trading today on the nasdaq under the ticker jd. here with more on the jd.com share sale is caroline hyde. it looks like appetite is pretty strong. >> $19 per american depository. raised --on being this company has never made a profit. that is a bit of a running theme with a large tech companies.

it is to valued at $26 billion. this is a bet on future growth in china, e-commerce in china. ever chineseiggest internet company listing in new york. they are selling a big stake to tencent. tencent, it is big for their biggest rival, alibaba. >> is it a good time to sell shares? >> it seems to be, in that respect. deem, it bodes very well for alibaba. to put it in perspective, jd.com is basically the equivalent to amazon. you can sell directly to consumers.

they are in charge of the inventory. across the warehouses china. there are a lot of costs. that is why they have never made a profit. ebay.a is like they are reportable to bring together the buyer and the seller. the only cost they have is managing the website itself. they have very little overhead. no wonder it is far more profitable. it is much bigger in terms of the online attraction that it gets. interesting that alibaba will be coming to the market later this year. it will be a big win. it does bode well. as we have said, it has been a big 12 months for ipo's. >> 2000 ipos. >> it does bet pretty big on where china is going in terms of e-commerce.

64%, that is how much we see e-commerce driving up in china. that is against a 12% increase in the united states. >> more people are moving to cities from rural areas. the big trend taking place on saturday, we are not going to see caroline until next week, i gather. there is a big birthday on saturday. [laughter] happy birthday. >> happy birthday. >> you and olivia share something in common. i will not say something. you were born the same year. happy birthday. >> thank you. >> thank you guys. >> what do you do when your industry is flooded with new competition? truck startedod out in new york city and down is becoming a now it is

national food chain. this week's installment of small to big. it is a fusion of southern american barbecue and mexican food. the food trucks to launch. i used to sit in my car every morning for five years saving a spot for the food truck. moved aroundk every day. people needed to be able to find us. without social media, no one would be able to find us. in the first year, we did tremendously well. slowly, it started dying down. the market became oversaturated. we were very aware of what the brand could be. we knew that we would need to be

very well-funded in order to get it there. at the end of the day, your brand is what is going to attract investors. social media helps develop your brand. and they message, while also keeping people entertained at the same time. finding the balance is quite difficult. guy.we brought on one some people are good at twitter and some people are not. this guy, everything that came out was witty. we are opening up to restaurants in 2014. in the next few years, we will have 8-10. then we will look to expand. no more food trucks. it launched the brand. which much of a headache. [laughter] -- way too much of a headache. [laughter] >> that is said.

i like the food trucks. >> it is a growing trend. i have never gone to mexicue. the line is always far too long. fan?ou a mexican food >> love it. >> mexican food in london is just not right. not right. just not right. we need to get it over here. >> i would love it. >> paris doesn't margaritas. >> i'm getting hung -- burritos and margaritas. >> i'm getting hungry. >> does anyone see olivia sterns in line for a mexican food truck? dead flat. a recipe for a higher equity market.

equity markets don't seem to be reacting. we are trading lower across major indices. perhaps because of the data. the data in europe is just not good. germany delivers, they always do. france mrs.. -- misses. france, we used to say they were in the core. they look a lot like italy and spain. there's a lot of pressure on the president to do something. below 1.37.staying struggling to come back up. whenever the data comes back out weaker and weaker, you know what everyone is asking. what is the ecb going to do about it? the pressure is on them on june 5. >> you are so wrong. there is nothing i would not do for a good bowl of walkable he. -- guacamole. y our next guest says there

could be big changes for the federal reserve next year. ♪

let's focus on the fed. it released its latest minutes is today. policymakers saw inflation from continued stimulus. me, the just said to

interesting part is that there was nothing interesting here. any takeaways from the fed minutes and what you think the fed should be doing about guidance? >> the fed minutes art normally absolute -- are normally absolutely riveting. but not last night. one of the reasons is that the thethat exists today is not fed that is going to be making decisions on rates, the important decisions. the fed has a gaping hole in it. we are missing a large number of governors. confirmed.n was we have to fill the rest of the places. the fed does not want to commit to much to issues around the structure of how they're going to be raising rates next year because they cannot commit because they're going -- >> ignore the official forecast. that is what janet yellen said

after that famous meaning a month or so ago. >> absolutely. i think we will start to see quite a lot more uncertainty come in around the fed as we approach october and the fed of quantitative quality. the next up is to raise fed funds up to zero. how quickly do you do that? how early do you start the process? there will be a quite range of opinion -- wide range of opinion, particularly as the new governors are coming on. we will start to see more divergent views, more uncertainty about the fed. i don't think markets are prepared for that. markets need to be shaken out of their complacency. >> it is an interesting point, the point that a lot of our guests make. it looks like the markets are too complacent -- and markets are back to the crisis levels. crisis levels. do you think the fed should be

improving its guidance? >> i think it is very difficult at this stage. we have been through enormous structural upheaval through the last year. what we have now got is a economistshere two can look at identical data and come up with two very different conclusions. it is unusual for economists to disagree like this. clearly. that is the worry. how can the fed give guidance -- i don't think janet yellen is dovish, actually, i think she is dovish about the labor market -- and then you have governors coming in who will be a bit more hawkish, in terms of assumptions about capacity that exists, you end up with very different conclusions. >> is that the problem that the bank of england is going to have come with personality changing in the next couple of months? becoming moreons unbalanced for some of the nine members.

does that push forward interest rate hike expectations are not? >> the issue in the u.k. is that the markets are used to the fact that there is a wider range of opinion from the bank of england. in the past, we have seen a bit of a dictatorship, let's face it. the fed chair has led from the front. >> is mark carney a dictator? >> i think he will be in the minority. this wonderful forward guidance, backward guidance, side-ward guidance. no one understood it. not just because of the accent. [laughter] he has been pushed a little to the sideline. they may contemplate tightening earlier. maybe a warning shot across the bow for the mortgage payers of the u.k. interest rates do occasionally go up, they do not just go down. >> back to the u.s. for a second, we had bill gross on must week talking about the neutral these days.

he sees interest rates that 2% out until 2017. when do you think the fed will start to hike interest rates? >> we think they will move next year. we should be looking for three rate hikes. maybe a little bit more. something in is what bill gross is saying. took over then fed, we have been used to the idea that interest rates are the be-all and end-all of monetary policy. that is not true. before the greenspan era, the fed used a wider range of weapons in its arsenal. it may be that the neutral interest rate is lower, but that is accompanied by regulation in the banking system, it is accompanied by reserve requirements. funded uses more than the rates to control monetary conditions in the economy. that is what the fed is going to

try to do, control monetary conditions. ofthe brave new world post-quantitative policy, we may have to prepare for a wider range of weapons in the fed's arsenal. >> we talk about weapons in the arsenal. numbers change anything from the eurozone when it comes to the ecb next month? >> i don't think so. we had that rather grotesque burlesque show by mario draghi, where he was hinting and lots of innuendo. the ecb have made up their mind. they're going to ease. it is going to be 10 or 15 basis points off the refinance. , i thinkof sentiment they may be making a mistake. food pricehings like inflation starting to take up a little but globally that my filter through into the eurozone.

in that environment, i could foresee later this summer a situation where the german consumers perception of inflation, not the reality, is rising. rising inflation, negative interest rates, italians running the central bank. i think there are risks around this. bank hasrman central been signaling lately that it will change its tune and support the mario draghi rate. >> speaking through gritted teeth, no doubt. [laughter] chief economist at ubs. thank you so much for joining us. >> let's get company news. itsivendi has sold remaining stake in blizzard. the deal frees up cash for

vivendi. losses doubled the first quarter as the chinese microblogging surface spend more to attract users. spotify says it has 10 million paid subscribers worldwide. that is after 6 million in march of last year. it is called euro's greatest digital influencer. contribute to providing a platform for musicians to be more creative and even move what music means to people, that is something that for me would be the holy grail. that is one of those problems that i would like to tackle. the musician in me would like to see how we can impact that. how we can impact culture. >> you can watch that tonight on

"charlie rose." been calling radio in the u.s. the cockroach of media. it does not go away. beatsis said to be buying for several billion dollars. we have spotify, pandora, apple radio with beats on their back. interesting to see how the competition plays out. >> coming up to me european elections begin today. -- coming up, european elections begin today. and what else to watch in the trading day. ♪

>> let's get a quick check on the currency markets. sterling down for the first time in six days. initial estimates in the deficit were bigger than analysts anticipated. high inons remain ukraine. ukrainians are finding new ways to protest. one of the latest is tech driven. we have this report. >> most people take to the streets to protest. now patriotic ukrainians are taking the fight to the high street. a new app called boycott the invaders. it can identify whether a product is made in russia. buy foodeone wants to from a company that does not pay do notthat is what we

want. we do not want to support the russian army. >> pro russian supporters continue to occupy buildings in the east of the country. many ukrainians are looking to with russia. this app has been downloaded more than 100,000 times in less than two months. it is essential to identify russian products, some say. english.ks like it is it is english. actually, if we scan the barcode , we can see it is not english. it is a russian product. >> it is not just apps. these two ukrainians left the popular russian social network for a ukrainian one. networke russian social , but after the russian intervention, we changed our minds and we stand to use this ukrainian social network instead, they say.

auction april, the network has launched000 users -- in april, the network has over 120,000 users. what cuts like this can inflame the situation. this cants like inflame the situation. jo -- local ukrainians are finding new ways to take a stand against the relations with their neighbors in the east. tom gibson, bloomberg. >> we are joined by ryan chilcote for a look at what we are seeing for the rest of the day. you have been speaking with some of the biggest business leaders in russia. >> that is right. we will be speaking with more. at 7:30 a.m. eastern time. big steel mills near detroit. we are watching russian president vladimir putin tomorrow, about the same time. he will address investors here,

two days before the big presidential election set for may 25 in ukraine. mark, olivia. >> a message from so many guests that things are business as usual in russia. let's go over to hans nichols and berlin. you are watching european elections. >> voting starts today. 28 nations participating. close to half a billion people will get the results sunday night. then we will talk about what it all means. olivia, mark. >> thanks so much. also today, we are going to get the listing of jd.com on the nasdaq in new york. the second e-commerce company in the world after alibab, which we are also expecting an ipo from. it will be closely watched. >> $19 each. the market value is 2.3 times. amazon is 1.9. >> also selling a stake to

tencent holdings. who is trying to rival alibaba. that doesn't for "the pulse -- that does it for "the pulse." "surveillance" is coming up next from new york. ♪

31 are killed in the west am a beijing is called anti-human and anti-society in the stock markets advanced higher as janet

yellen considers a considerable time. mcdonald's wholesome and there'll shareholder meeting as protesting employees scream that we are worth more. good morning, everyone, this is "bloomberg surveillance." it is. thursday, may 22 i am tom keene and joining me is scarlet fu. and adam johnson. >> data was positive over night in china with the pmi rising. in europe, the services sector rose to the highest in almost for years. if there's a caveat, it's just that we are starting from a low base but the data is getting at her and you cannot deny that with futures up again. >> we have housing coming up later. a.m., last week it was under 300,000. we have